Many times we need credit and we do not know who to turn to. How can we know who will lend us money? It can happen that we apply for credit to a lender that leaves us with an interest of 15% when we could really have gone to a bank that would have left us much cheaper.
The solution to this problem is to consider what is the order in which we should go to one or another lender.
The inverted pyramid of interest
From HelpMyCash.com we have prepared a reverse pyramid, in which you can see, ordered from lowest to highest interest, the types of loans we can access.
- Personal loans. This type of loan includes the loans granted to us by the bank in which we have a payroll. They tend to be around 10% interest. Our bank should be where we think first if we need financing because it knows our financial profile and they will know in advance if they can leave us the amount of capital we need. Here we could also include other banks, even if we are not customers of them. Although there is an inconvenience, they will only lend us the money in two situations: if our financial profile is perfect, but we have refused to request the credit in our bank for reasons of disagreement; or if we are young and we need to finance some studies, since young people are potential lifelong clients. A personal loan to consider is the EVO Banco EVO Intelligent Loan.
- Private lenders. In this group, we can include the intermediary lenders like SUizaINVEST, or credit agents such as Cofidis. The former have an interest starting at 10%, but they add commissions to their products, which can be quite high, depending on the situation. In contrast, Cofidis style lenders have an APR that ranges between 10% and 25% but do not apply any commission or additional cost for the service.
- Credit cards. Plastic money is paid, and it is paid dearly. This service is very useful because it goes with us wherever we go, accompanying us faithfully waiting to be used. However, the cost is very high, and usually exceeds a quarter of the loan we have requested, that is, the interest comes between 25% and 27%. You have to be careful with the ease of spending money that surrounds credit cards since we can be wrapped in a vicious circle with a very difficult exit. However, these products also provide numerous advantages, as we can see with the Citibank Citi Gold card.
- Minicréditos. Mini-credits are the flagship product of recent months, unseating the rest of financing methods, both for its speed and the credit capacity of its lenders. However, these products are among the most expensive on the market, even the most expensive. However, they are often our last option to get quick money to help us solve those last minute problems or certain misfortunes that have been created over time. Mini-loans are products that have an APR that can easily be placed at 2,000%. This is because they are fast return products, and their interest is calculated for terms that do not exceed, in general, one month, and hence the high level of APR they present. Companies like Vivus are among the best mini credit on the current scene in Spain.
* Discovered. Having an uncovered account always leads to additional expenses, and depending on the amount we have uncovered, it will be a cheap or certainly expensive product. This is basically due to three factors:
- The uncovered commission: the entity will charge a commission for the fact of having an overdraft and contracting a debt with the bank. The commission is usually applied to the highest debit balance and is calculated from a percentage fixed by each entity and which is usually around 4.50%. In addition, they usually establish a minimum amount of approximately € 15.
- Commission for claiming debtor positions: this commission is justified by the steps the bank is supposed to take to claim the debt from the client. It is usually set at € 35.
- The interest of the overdraft: it is the interest rate applied to the amount lent to the client at the rate of the overdraft. In most cases, it is around 9.50% nominal annual.
Now that you know the way forward, check all the loans and request the one that best suits you- Finding the Right Instant Loans Approval Lender.